Meta moves to unwind $2B Manus deal after Beijing's demand (techcrunch.com)

Meta is in the process of unwinding its $2 billion acquisition of the Chinese-founded AI startup Manus, responding to a national security divestiture order from Beijing. The company has severed operational ties by disconnecting Manus from its internal systems, effectively preventing the use of Manus' technology in Meta's projects. This significant move reflects China's ongoing efforts to maintain control over sensitive technology and indicates the tightening of regulatory frameworks surrounding foreign investments in its AI sector. As Meta navigates this complex separation, Manus co-founders are exploring options to raise around $1 billion from new investors to regain control of the startup, potentially leading to a new joint venture structure within China. This situation highlights the tension between Western companies and Chinese regulatory frameworks, which now impose stricter requirements on capital inflows and international travel for tech executives. Overall, the unwinding of the Manus deal not only marks a setback for cross-border collaborations in AI but also underscores China's strategic goals in safeguarding its technological sovereignty amid increasing scrutiny from global investors and regulators.